Is Sambandam Spg. overvalued or undervalued?

As of 14 October 2025, the valuation grade for Sambandam Spg. has moved from very attractive to attractive. The company is currently assessed as undervalued, particularly given its low price-to-book value of 0.55 and an EV to EBITDA ratio of 14.82, which is relatively reasonable compared to its peers. However, the negative PE ratio of -8.34 and a ROE of -9.00% indicate significant challenges in profitability.
In comparison to its peers, K P R Mill Ltd is classified as very expensive with a PE ratio of 42.08, while Vardhman Textile is attractive with a PE of 13.43. The stark contrast in valuations suggests that Sambandam Spg. may present a buying opportunity for investors looking for value in the garments and apparels sector. Despite recent underperformance against the Sensex, with a year-to-date return of -36.19% compared to the Sensex's 4.98%, the company's current valuation metrics indicate potential for recovery.